How Do You Assess Supplier Risk?

In a recent article published in the July 2009 issue of Inside Supply Management entitled “Watch Points on Supplier Health,” a recommendation was made that supply management professionals rely on leading indicators such as the Altman-Z Score to avoid supplier financial meltdown or to mitigate its effects. The Altman-Z score is a quantitative balance sheet method designed to determine a company's financial health and likelihood of bankruptcy. ...

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